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Texas Legislative Committee Proposes Ways to Protect, Expand LNG Industry

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7 minute read

From Heartland Daily News 

By Bethany Blankley

“the Biden Administration’s federal permitting pause during a presidential election year appears to be purely political in nature and an attempt to disrupt Texas’ booming economy, now the eighth largest economy in the world…. it is abundantly clear American LNG is in the best interest of the Texas economy, local communities, our national security, and global energy security.”

A state legislative committee is proposing ways to expand Texas’ liquified natural gas (LNG) industry after the Biden administration announced it was pausing pending applications for LNG exports that would significantly impact Texas.

The Texas House Select Committee on Protecting Texas LNG Exports issued its findings after holding a hearing on the topic earlier this month. Led by state Rep. Jared Patterson, R-Frisco, the report states, “the Biden Administration’s federal permitting pause during a presidential election year appears to be purely political in nature and an attempt to disrupt Texas’ booming economy, now the eighth largest economy in the world.

“It has caused long-term uncertainty for both investors and allied nations around the world relying on American energy, particularly in Europe as they seek to wean themselves off Russian natural gas. After multiple studies across Democratic and Republican presidential administrations, it is abundantly clear American LNG is in the best interest of the Texas economy, local communities, our national security, and global energy security.”

House Speaker Dade Phelan, R-Beaumont, created the select committee and charged it with evaluating the impact on the Texas LNG industry and to propose actions the state legislature could take in the next legislative session to protect it.

Phelan’s district is critical to the oil and natural gas industry. It encompasses a region known as the “Golden Triangle,” rich in oil and natural gas production, processing, refining and exports in the southeast towns of Beaumont, Port Arthur and Orange. It includes a key LNG export terminal currently under construction in Port Arthur, where several LNG facilities are also located.

The LNG terminal, once completed and operational, is expected to have an export capacity of 13 million tons a year. With access to the Gulf of Mexico through the Sabine-Neches ship channel, it represents a $13 billion investment in new energy infrastructure, the report states.

The U.S. leads the world in LNG exports, led by the Gulf states of Texas and Louisiana. In 2017, the U.S. became a net exporter of natural gas for the first time since 1957, “primarily because of increased LNG exports,” according to the EIA. The U.S. became a net exporter after Cheniere Energy was the first to export domestically sourced LNG from the Sabine Pass LNG Terminal in Cameron Parish, Louisiana, and from the Port of Corpus Christi in Texas, The Center Square first reported.

Nearly 25% of U.S. natural gas reserves are located in Texas and 30% of the largest hundred natural gas fields in the U.S. are in Texas, the legislative report notes, citing state data. It also identifies six LNG facilities nationwide that would be impacted by the ban, including two in Texas, in Port Arthur and Corpus Christi.

Texas ports, including Port Arthur and Corpus Christi, are among the top ports in the U.S. leading in foreign trade impact, and the Port of Corpus Christi continues to break records in tonnage, primarily due to oil and LNG exports, The Center Square reported.

Texas Oil & Gas Association Chief Economist Dean Foreman, who testified before the committee, said, “Texas and Louisiana bear the brunt of short-sighted federal policies that jeopardize LNG export projects, representing potential investments of $200 billion across the value chain, including a projected 20% increase in Texas’ dry natural gas production.

“The reasons given for this pause – concerns about higher domestic natural gas prices, emissions, and community impacts – are clearly unfounded. U.S. LNG exports have responded to global demand, driving domestic innovation that enhances productivity and reduces consumer costs. LNG has replaced coal in power generation, emerging as a primary driver of emission reductions, and have catalyzed economic growth across the Gulf Coast. On all accounts, U.S. LNG exports have proven to be decisively beneficial.”

Two key claims the administration made for implementing the ban (LNG exports increase domestic energy costs and increase methane emissions) have been refuted, The Center Square first reported. A bipartisan coalition of Texas’ congressional delegation called on the president “to refocus on policies that support US LNG,” understanding that Texas is the energy capital of the United States, The Center Square reported. Sixteen states, led by Louisiana and Texas, also sued, arguing the ban is illegal.

The committee recommended that the legislature “consider legislation and policies authorizing the governor to develop and execute an interstate compact with the goal of sharing state information, resources, and services with other interested states seeking to protect and grow the LNG industry along the Gulf Coast.”

It also recommends that the legislature propose legislation and policies to permit temporary eligibility of LNG facility construction grants and loans when federal permitting pauses occur; provide economic incentives for LNG facilities to counter market consequences of a federal permitting pause; reform specific permitting regulations and increase overall permitting process efficiency; expand funding for project construction and development through the Texas Department of Transportation’s Maritime Infrastructure Program; increase workforce grants made available through local colleges to meet workforce demands for construction and facility operations; and mandate that official reports be published every year providing data on the “relevance and importance of the LNG industry regarding the public interest.”

Bethany Blankley is a contributor at The Center Square.

Originally published by The Center Square. Republished with permission.

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Energy

European Outage Shows Weakness Of ‘Renewable’ Energy

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From the Daily Caller News Foundation

By Chris Talgo

Like most of Western Europe, Spain and Portugal have been at the forefront of the green movement in recent decades. Both nations have embraced renewable energy sources, especially wind and solar, as they have transformed their energy grid infrastructure to rely heavily upon these sources.

With that being said, it should come as no surprise that the extensive power outage that crippled these countries and parts of others earlier this week was primarily caused by a huge drop in solar power output in a short period of time.

To be exact, as the Associated Press reports, “In a span of just five minutes, between 12:30 and 12:35 p.m. local time (1030-1035 GMT) on Monday, solar PV generation plunged by more than 50% to 8 gigawatts (GW) from more than 18 GW.”

Based on an early report, the sudden drop in solar power occurred at two solar facilities in southwest Spain, which triggered a “complete collapse of the system,” according to Spanish Prime Minister Pedro Sánchez.

Because power grids are complex structures that are often intertwined among nations, when one country experiences a major outage, it typically spreads to its neighbors as well. Such is why areas in Portugal, France, and Belgium experienced large power outages after the Spanish grid collapsed.

Predictably, the mainstream media are totally ignoring the cause of this manmade disaster.

For now, the official narrative is that the abrupt power outage was due to a “rare atmospheric phenomenon.”

The truth is that Spain, which generated 56 percent of its electricity mix in 2024 from renewables, has become a canary in the coal mine for other nations that are considering going all-in on renewable energy.

Red Electrica, a fitting name for Spain’s monopolistic utility power provider, blamed the power failure on “severe oscillations in high-voltage lines in southern France or inland Spain.” The company said the possible causes “include a physical fault (line disconnection), a sudden loss of generation within Spain or an atmospheric phenomenon.”

What recently occurred in Spain, Portugal, France, and Belgium is not an isolated incident; it is only the latest instance of an electric grid being unable to deliver on-demand power due to an overreliance on renewable energy.

The same thing’s been occurring more and more in the United States in recent years, especially after President Biden’s four-year war on natural gas and coal, which can provide abundant, affordable, and reliable energy 24 hours per days, seven days per week.

As the federal government, in cahoots with state and local governments, has pushed electricity grid operators to build more solar and wind power facilities instead of dependable natural gas plants while prematurely shuttering perfectly operable coal power plants, the U.S. grid has suffered.

As the American Energy Alliance notes, “ power outages have increased by 93 percent across the United States over the last 5 years—a time when solar and wind power have increased by 60 percent. Texas, who leads the nation in wind generation, and California, who leads the nation in solar generation, have had the largest number of power outages in the nation over those 5 years.”

It also must be emphasized that wind and solar are not environmentally friendly.

While it is true that solar panels and wind turbines produce little to no direct carbon monoxide emissions; it is also true that the manufacturing process requires vast amounts of rare earth elements.

It is also the case, as even the Los Angeles Times acknowledged in 2022, that enormous solar fields and gigantic wind turbines destroy pristine lands, disrupt habitats, are nearly impossible to recycle, and result in the mass killing of birds, whales, and other animals.

Finally, it is essential to reinforce the fact that not only are wind and solar unreliable and bad for the environment, but they also cost more, not less, than natural gas and coal.

As James Taylor, President of The Heartland Institute, notes in a new Policy Study, “a peer-reviewed analysis of full-system levelized costs of competing power sources shows wind power is seven times more expensive than natural gas power and solar power is 10 times more expensive.”

The good news for Americans is that President Trump understands the fundamental folly of the so-called green movement. Unlike his predecessor, Trump is not interested in pushing what he calls the “green new scam.”

Over his first 100 days, Trump has taken a vast array of actions to roll back Biden-era regulations that stifled domestic energy production. Moreover, Trump wants to export natural gas to Western Europe, which would weaken Russia’s war machine while bringing our traditional European allies back in the fold.

Hopefully, this dark episode will help other European nations, Germany in particular, recognize that you simply cannot run a modern nation primarily on wind and solar power.

Chris Talgo is editorial director at The Heartland Institute.

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Alberta

‘Existing oil sands projects deliver some of the lowest-breakeven oil in North America’

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From the Canadian Energy Centre 

By Will Gibson

Alberta oil sands projects poised to grow on lower costs, strong reserves

As geopolitical uncertainty ripples through global energy markets, a new report says Alberta’s oil sands sector is positioned to grow thanks to its lower costs.

Enverus Intelligence Research’s annual Oil Sands Play Fundamentals forecasts producers will boost output by 400,000 barrels per day (bbls/d) by the end of this decade through expansions of current operations.

“Existing oil sands projects deliver some of the lowest-breakeven oil in North America at WTI prices lower than $50 U.S. dollars,” said Trevor Rix, a director with the Calgary-based research firm, a subsidiary of Enverus which is headquartered in Texas with operations in Europe and Asia.

Alberta’s oil sands currently produce about 3.4 million bbls/d. Individual companies have disclosed combined proven reserves of about 30 billion barrels, or more than 20 years of current production.

A recent sector-wide reserves analysis by McDaniel & Associates found the oil sands holds about 167 billion barrels of reserves, compared to about 20 billion barrels in Texas.

While trade tensions and sustained oil price declines may marginally slow oil sands growth in the short term, most projects have already had significant capital invested and can withstand some volatility.

Cenovus Energy’s Christina Lake oil sands project. Photo courtesy Cenovus Energy

“While it takes a large amount of out-of-pocket capital to start an oil sands operation, they are very cost effective after that initial investment,” said veteran S&P Global analyst Kevin Birn.

“Optimization,” where companies tweak existing operations for more efficient output, has dominated oil sands growth for the past eight years, he said. These efforts have also resulted in lower cost structures.

“That’s largely shielded the oil sands from some of the inflationary costs we’ve seen in other upstream production,” Birn said.

Added pipeline capacity through expansion of the Trans Mountain system and Enbridge’s Mainline have added an incentive to expand production, Rix said.

The increased production will also spur growth in regions of western Canada, including the Montney and Duvernay, which Enverus analysts previously highlighted as increasingly crucial to meet rising worldwide energy demand.

“Increased oil sands production will see demand increase for condensate, which is used as diluent to ship bitumen by pipeline, which has positive implications for growth in drilling in liquids-rich regions such as the Montney and Duvernay,” Rix said.

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